We are seeing a huge increase of interest in the world of cryptocurrency. And two countries that are the locomotives of development of the whole crypto industry is Japan and China.
Cryptocurrencies have become very popular in China due to strict control of the monetary authorities in relation to the yuan. Sometimes the government intends to devalue the yuan for trade purposes. As the Chinese economy is an export-orienting, for Chinese exporters an important weak yuan. For example, the company Xiaomi has released a mobile phone which she plans to sell in the West, and the sale will happen for dollars. Let's assume that the price of the phone is$ 1000. A month ago the exchange rate from the Dollar to Renminbi was 1 for 6 and tonight 1 to 5, courses is also conditional. In the first case, the company upon conversion will receive 6,000 yuan, while in the second case, only 5 thousand. The state is also a big plus. Since 6 thousand will be paid more taxes.
But for the locals the situation is not very good. With the growth of private capital in China rich people have paid attention to crypto-currencies that are alternative to the yuan. With their help, capital can preserve, increase, and at the same time and quietly withdraw.
This is just one example of the interest in the cryptocurrency from people in China, but there are more. In China, the abundance of cheap energy and equipment, which facilitates the mining process (cryptocurrency mining). The combined capacity of the Chinese mining pools make up about 60% of the total power of the entire Bitcoin network.
In connection with the repression of the authorities, which occurred in January 2017, in respect of Chinese crypto exchanges, there was a reduction of transactions volume on Chinese exchanges and increases them in Japanese. About the repression of the Chinese monetary authorities can read in my previous article.
The above actions led to increased trading volume in Japan, which has grown from one to six percent. But that's not the main reason for such big interest from citizens of Japan. In the country the minimum interest rates on deposits, and some types of bonds are so negative in general. As in China, the cryptocurrency began to be considered as a more stable asset than the national currency. Therefore, more and more people prefer to invest and store their money. And of course do not forget that in April in Japan, there was legalization of cryptocurrency. In effect, the bill gives bitcoin and other cryptocurrencies status of means of payment.
At the moment China and Japan are the driving force of the entire global crypto industry.
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